i am betty liu. americans who kept their health care and did not comply with obamacare will be able to keep their plans longer. policies can be renewed for another two years. about 2.6 million americans had their policies canceled when government exchanges opened last october. goldman sachs is in first place when it comes to equity underwriters, taking in an estimated $1.7 billion in fees. , the biggest deals, the twitter ipo. they just keep on coming. secretary of state john kerry is in paris where he will meet with the foreign minister of russia over the crisis in ukraine. the obama administration is considering economic sanctions on russia. offeredeantime, the eu

ukraine $2.2 billion in loans. all eyes are on secretary of state john kerry as he sits down with his counterparts. the former president of georgia highlighted the importance of the west's reaction to vladimir when he spokes down with ryan chilcote. >> it could signify a fast and for vladimir putin's adventures. it depends on how the west will react. >> we certainly do not want them to be messy. for more on the tensions in crimea, ryan chilcote joins us. what are we expecting from john ?erry's meeting today >> i think we can expect a frank exchange of views and hopefully, both sides are looking to find

out what they intend to do next to read remember, -- next. remember, the united states has threatened sanctions against russia. i will be something the russian foreign minister will want to hear more about. secretary kerry will want to hear about what the russian military intends to do in crimea . this is the first time these two men have come together since the crisis began for face-to-face talks. president obama and president vladimir putin spent 90 minutes on the phone the other day, but i did not seem to lead to anything. there is a lot at stake. secretary kerry will be trying to learn from the russians, if they have no intention of escalating things, by say, for example, sending forces into the east of ukraine, is there

anything -- anyway -- and this is something vladimir putin did not indicate, that they would back down from their position in crimea where they are effectively in control. is not just fending off this armed conflict. they are also seeking financial assistance. how is that affecting discussions, ryan? >> that is an interesting one. the prime minister told me "what do you think" when you have armed forces in your country while you are trying to negotiate with the imf. it is not helpful. i sat down with the economy minister. he said if any of the western countries where thinking about not ponying up the cash they were thinking about pledging, this would focus their mind. we expect the ukraine to be offered a $3 billion loan.

billion offer2 from the european union. -- the imfdollars says maybe they will not get all of that, but there should be enough money for the country to get through elections. betty. you, ryan chilcote. i want to talk more about how the situation could play out and affect the world. secretary of state john kerry on therom kiev possibility of sanctions against russia. >> if russia does not choose to de-escalate, if it is not willing to work with the government of the ukraine as we hope they will be, then our partners will have absolutely no choice but to join us to continue to expand upon steps we have taken in recent days in order to isolate russia politically, diplomatically, and

economically. expand upon steps and isolate russia -- tough talk from the secretary. i want to bring in roger altman, former deputy secretary under president bill clinton, and he is also the founder of evercore partners. also with us is republican senator ron johnson of wisconsin who served on the budget committee and the homeland security committee. roger, let's start with you. from secretary of state john kerry. does he have the firepower to follow through? >> this will take a while to play out. let's put it in perspective. theimir putin's move into ukraine is a move out of weakness, not strength. russia had reached an agreement with the ukrainian leadership on package, orn rescue

the ukraine would reduce its commitment to the eu, aligned with russia, and in effect we protectorate,'s so to speak. >> and alliance. >> that is what we were three months ago. 10, the government is overthrown -- then, the government is overthrown, a form of democracy breaks out, and russia is on it's heels. >> do you think it is a desperate move? >> i do not know about desperate, but it is born out of weakness. i think vladimir putin has made it clear he does not want to move into the western part of the country because that would bring a much stronger response from the u.s.. i do not think that will happen. number three is the question of use president

obama's terms. putin will have to pay. the question now, which will take a wild to play out is what are the costs -- which will take a wild to play out, is what are the costs russia will play? are we going to see putin with area -- the crime crimea peninsula? no. navalthe one warm weather base they have, so it is of strategic importance. , do not think that mr. putin given the uncertainty of where the ukraine as a whole goals, is going to give that up.

>> senator, you are listening to roger altman's analysis. would you largely agree with that? >> i am not sure you look at well russia did and call that a move of weakness. they're not a strong economy and dependent on oil exports and they enjoy world chaos because it keeps the price of oil high. i appreciate what the administration is trying to do. i want to try to unify. i want politics to and at the waters edge. >> what bothers you? >> we need to act. i think we should act in measured fashion. i do not want to escalate, i want to de-escalate, but vladimir putin has to pay a price for what happened in crimea. we certainly do not want him to advance further. russia has been putting pressure on all of those fledging

democracies, the former client states of the soviet union, and toy will continue to try destabilize those regimes which is not good for the west and economic world order. >> roger? >> putin's move into crimea was not a weak move, but the moveess -- was out of weakness. it is not clear what the cost putin will pay will be, and whether we can impose large t olls on russia. we have the tools, but i do not think the united states wants to act alone. >> let's look at the aid package the u.s. is helping to put together with the europeans. senator, do you expect the aid congress and do

there need to be conditions placed on it? >> this is no time to be penny wise and tom bullish. it ministration has to make the case why it isn't -- this is no time to be penny wise and tom bullish. they were asleep at the switch assuming the ukraine would join the eastern association, and that did not happen. we have the opportunity to snatch victory out of the jaws of defeat, and that is why this is important we act in a unified fashion with american and european partners. to get back to what is going on in washington, with the subject you are both well versed in, the budget. the white house proposed a

budget of almost $4 trillion yesterday. critical onave been the record on and again saying the senate is dysfunctional under senator harry reid and that the democrats are not serious about true fiscal reform . was there anything in his new budget they gave you any sense that could be compromised here? >> i do not see anything. it is $1 trillion more in taxes, increasing spending dramatically, not adhering to the compromise budget deal president obama signed a few months ago. that has been a problem. we do the budget control act, and then people weasel out of that. they do a compromise, and the first piece of legislation violates that. of course, this president is doing nothing to address the two thirds of the budget, the transfer payments, entitlement programs, that are on an unsustainable path. i do see a lot we can compromise on here.

i happen to like the budget, but it is, relatively speaking, a non-event. there was a key agreement struck two months ago by the house represented by paul ryan, the senate represented by patty murray, in terms of discretionary spending and the key items within the discretionary account. second of all, this is a congressional election a year, obviously. i do not think this budget, which i happen to like, is going anywhere. >> what do you like about it? >> the deficit is going down considerably. >> is that from fiscal reform or from the economy growing? >> i think it is both. the sequester, which i did not happen to think is an intelligent approach, has been effective. have beenwe increasing revenue because of the economic recovery and the composition of the recovery. those two things and some others

have resulted in the deficit coming down considerably. it is projected at 3.1% of gdp. it is way down. it was over 9%. we should step back and recognize that is good progress. you could debate who is responsible, but it is good progress. second, some of the initiatives, let's just take infrastructure, are so vitally needed. both sides agree, it is just how to pay for it. it is not going anywhere. senator johnson is right. it is an election year. this budget will just sit there and not be acted on. >> senator, you are saying it does not address the big issues, which you mentioned, entitlement spending. there were no big numbers around cutting social security or any of those benefits. as i go back to that same anytion though, was there area, though, that you felt there could be some agreement on

? >> nobody is proposing cutting anything. we are trying to limit the rate of growth to the point where we do not extend that to the point where he had a debt crisis. the reason debt is coming down is because we have increased revenue by more than $650 oflion since the low point 2009, and that is through economic growth, so we should be enacting regulatory form, utilize god-given natural resources. those are things we can do to increase revenue. congress should take the budget agreement, go through a thoughtful process of appropriations where we prioritize spending. we have not passed an appropriations bill in the senate in two years, which highlights the dysfunction of senator harry reid's senate. if we can do that between now and the election, that would be a good thing for the american people. on.enator, hang

i want to talk to you more about the markets and the jobs market. hang on. senator ron johnson, and roger altman staying with me as well. shaking thisnd hour, former microsoft ceo steve company who says his was successful at being a two trick pony, but he is sorry they sooner combine software like apple did with the iphone. why did youuld ask not do the third trick right, and i'll just call that phones. i do not know if we were too busy, if we did not know the tools, and what the challenges those two tricks will go for a lot of years, but in our industry you have to do a third trick. >> coming up, we talked tech

with one of the best-known venture capitalists in silicon valley, then or what. employment,ivate hundred 89,000 -- the number adp privatet -- employment report, 100 89,000. the number is just below what was expected. stay "in the loop." we're just getting started on this wednesday. ♪

>> breaking news now on the employment front. i am economics editor michael mckee. the adp employment report for february comes out weaker than expected by a fair amount -- 139,000 jobs created, much lower than the 155,000 that had been forecasted, way below the trend. according to the folks at adp moody'sesinvestors --

investors.com, bad weather is responsible for most of this. were almost all in construction. that is not square with the weather issue. sense -- square with how you put that all together. the financial sector loses jobs, the weakest performance since 2011. is adp news for friday has been consistently overstating the amount of job compared the economy to what the labor department finds. we're expecting 154,000 jobs created overall in the month of february. this might cause people to knock that down a little bit. >> thank you, economics editor michael mckee. we are back with my guest host, roger altman, former deputy secretary, and republican secretary ron johnson.

roger, let me start with you again on this jobs issue. it is a subject that you have both studied very well, but morton zuckerman, i believe you read his op-ed earlier, and this is what he wrote about why he thinks the jobs recovery is not enough -- "government is perpetually establishing economic policies and rules that businesses perceive as overregulation, dampening the willingness to invest." do you agree with that statement? >> not particularly. i do not think excessive regulation is one of the two or three biggest problems facing the u.s. economy now. at the margin you could debate any particular regulation and so forth. there has been a huge increase in the health care and banking sectors in the last few years, but fundamentally, he was right on the central point that he made in the peace -- >> education. >> and the key to restoring good

quality, middle-class jobs, and i would add the only way we're going to turn around the having standards americans are experiencing with median household income 7% below the pre-crisis peak, the only way we will do that isn't proven education outcomes -- high school -- is improve education outcomes, high school and higher education. since 2004, graduation rates at the high school and college level have increased meaningfully, and it is so crucial for us to keep going. effect of 15little or 20 years -- a cumulative affect of 15 or 20 years and it is important that we keep that going. >> it is interesting. i would love to talk more about education because both sides would agree that we need to invest in education. >> n the federal role in education is minor. occurs and is

paid for at the state level. >> senator, there is one answer democrats have immediately to raise the living standards of americans. they say raise living -- the minimum wage of $10.10, and you say no. >> it would reduce the number of jobs available to those people on the bottom of the economic ladder, and we would deprive , butof the bottom rung this should not be as hard. it is hard to overstate the harm that regulations and policies have. i spake -- spoke to business owners who started 30 years ago who say there is no way i could've started my business and grow with the way i did if i had to do it today. of regulationarm and uncompetitive tax rates -- you have to make america an attractive place for capital

investment and business expansion, and we are not doing that. we are not doing that by demonizing business and demagogue and success. >> i have heard that, too, that it would be harder to start a business now than 30 years ago, but are the heirs or we could roll back regulations? >> first of all, the business formation rate in lots of big sectors of the united states is very high. if you go to texas, the business formation rate is remarkable. >> taxes are low. >> that is not the biggest reason. it is one factor, but not the main factor. first of all, i do not agree that business formation is weak and poor in the united states, number one. number two, maybe some people are demonizing success and business, the fed is not the way the american people -- but that

is not the way the american people feel about it. historically, this country has celebrated -- >> you not think there is class warfare, the 1%, the 99% -- you have seen billionaires like more zuckerman try to defend themselves, say they feel demonized. >> i do not like the debate, but there nothing new about the debate in american history. if you study the history of populism, we have had moments of much greater populism, much greater anti-weld -- if you think back to some of the comments -- anti-weld -- if you think back to some of the comments theodore roosevelt made, they make the debate look small. i did not happen to like the debate, but it is not a new debate. this is rather the american way where a radically we have this discussion. -- where wein periodically have this discussion. the people do not mind

wealth being created. what they are focused on is getting falling income reversed, and beginning to create again good, quality, middle-class jobs, and if the 1% happen to be doing very well, that is fine. >> roger, we will have to leave it there. it occupy wallat street, and who supported that movement of at least rhetorically. it was the president and that was democrats. been demonizing. we have increased regulations, uncompetitive tax rates -- it is harmful. you have a strong middle class with a robust economy, and our week, tepid growth during the last four years -- the opportunity costs, the lack of economic opportunities we have .ealized is hard to make up the sooner we start incentivizing and celebrating success and make america an attractive place for is

expansion, the better. >> i do not think even the lone ranger has spotted occupy wall street in the last two or three years, but i will leave that there. >> roger, stay with me, you will be with me through the hour. senator ron johnson, thank you so much. word.d the last >> have a great day. >> thank you. always great to see you. 26 minutes past the market, julie hyman has a look at early trade after adp results. >> you would think futures would be taking a hit because job additions came in worse than estimated, but nonetheless we saw futures move higher after that report. changeseeing not much overall in the direction of where we are going, but nonetheless a little bit of a positive bias. perhaps investors are glomming onto janet yellen's comments before congress, not really different than what the fed said

it, they will be data-dependent. if you look at what is going on in the treasury market, and how we see reactions of there, we are seeing yields bump up higher . not a huge amount of movement, but the yield on the 10-year to about 2 point seven percent with prices erasing losses and we saw direction change in treasuries than stocks. look at the dollar. we see a little bit of a -- actually, very little change in the dollar index versus the basket of currencies. if you look at, oddities and what we see in the commodities market, we see oil extending its biggest loss that it has seen in about two months. west texas intermediate, brent slipping, and we see speculation that the situation in the ukraine could pose a risk to oil

supply. finally, gold -- let's see if people are looking for safety. we do not see much of a change in gold, but a tiny, tiny, tiny bit of a bid. alix steel has a look at the top stories. >> standard chartered reported its first drop in full-year profits in more than a decade. the london-based bank that gets most of its profit from asia rose down $1 billion last year as bad loans increased. .hina declaring war on smog in a speed equivalent to the state of the union, the chinese premier said pollution is a major pop him and he plans to address the problem by removing high emission cars from the rose and closing close fire furnaces. the nfl is talking about game,ng the rules of the

awarding seven points for a touchdown, and giving teens the option for an extra point -- extrathe option for an point. that comes after teens missed only five of 500 extra point kicks last year. >> it is time for the big number -- $2.6 billion. that is how much the top dogs in private equity took home last year, more than double what they made in 2012. the number was a some of the earnings the founders of nine of firmsrgest private equity made. each took home at least $160 million in pay. the biggest winner was apollo at $546.3 cash in million, $80 million more than steve schwarzman. the most recent edition of "bloomberg businessweek"

banks.hts kopecki,ined by dawn who is in washington, who has read the -- written a piece on jpmorgan, and my cohost who knows all of the big players, roger altman, chairman of eric were, but -- ever court, but david, let's start with you. m&a fueled by private equity, and it will only be more in 2014. >> it is not going to come roaring back. that is one of the favorite parlor games. they have cried wolf at this point. if a comeback steadily. ofvate equity has sold a lot assets with firm selling companies they have built up.

they have cash to spend. it does not mean they will do silly deals and deploy the money anywhere. they are already doing some shopping. that is where bankers see some of the growth, in the $1 billion range5 that was sleepy last year. 's?you will see more lbo >> in that area because they have money to spend. vices are high, because things are expensive -- prices are high because things are expensive. >> who is making the money from these deals? dawn kopecki? >> jpmorgan is again. years,e past five goldman sachs, j.p. morgan, they have dominated the top spots. jpmorgan was earning the most, driven a lot by their bond

underwriting deals. and you saw goldman sachs and morgan stanley -- those three have really dominated. they all have strong mergers and acquisitions businesses, and for jpmorgan, they have strong bond underwriting. the secret to is getting these deals for a bank like yours? >> first, let's respond a little bit. financial sponsors, which is a better term than private equity, financial sponsors have been very active for a long time, including in the past year. more of the activity has been on the sell side because prices have been high, and they have been selling, as leon black said, everything that was not nailed down, and very successfully so. they have done well in that regard. they have been active. the converse of that is with prices high it is difficult on the buy side, and you have not seen a lot of buy side activity

by historical standards by the financial sponsors, and i think it will continue to be spotty this year in that regard. are they active? of course aaron sometimes more side, and sometimes more on the buy side. in terms of the broader market, i think david is right. there will be a slow recovery in mergerransaction volume volume, but united states has been up, but the rest of the world has been so weak that the totals as a whole have been down. was down evenume though the u.s. was up. the u.s. is the strongest market and a firm like ours is about two thirds -- 130 u.s. versus

offshore. >> where is the sweet spot for your firm? where can you make headway? >> one of the trends that has occurred for quite a few years and it is reflected in an ipo filing, is the degree to which there has been quite a shift in terms of total m&a fees captioned by the independent firms like ever court, -- captured by the independent firms like evercore. in 2000, the independent firms had about 3% and last year they had about 20%. there has been a big shift, and there has been a host of nowhere, independent firms, but -- of newer, independent firms. >> why has that should taken place, david?

>> you have seen very good bankers leave smaller firms. sometimes they leave for pay, but they bring relationships with them. we have seen them show up on big deals. heinz was a huge deal, and boutiques had roles in that. they are taking these relationships with them, doing very well. a lot of the bankers, some of them want to focus on deal-making as opposed to being in meetings and a lot of the bureaucracy that comes with being in a larger bank. maybe as they get later in their careers, i'm sure roger could speak to this better than i can, they just want to do the deal rather than just managing a group of bankers. they just want to deal with clients, so they go to smaller banks and you get more activity that way. do you see any, shifts among the top three, or are they well entrenched?

>> they seem to be well entrenched in the positions, and when you look at second-tier banks there is always some movement there. as a bond market, you will not see the pop in the bond market this year or last you like you did last year because interest rates are still at all-time lows, so you will have to see banks like jpmorgan struggle a little bit. bank of america also did well in bonds, and that help to move them to -- i believe they were at number four is here. you will see the banks struggle to make up the income in other areas, however bankers seem to think they might be poised for maybe not necessarily a big boom in m&a, but kind of a gradual reclaiming of that territory. overall fees were somewhere around $56 billion, down from over $85 billion in 2007. the banks are nowhere near that mark, but he's overall were up 4.5% this year, so you are

seeing a little bit of a recovery. the big issue is ceo's and cfo's are starting to get a little more confident, and as they get more confident in my they will put the record cash they have on their balance sheet back to work. so, it is gradual, nobody wants to jump in full throttle, but you see more deals being done. >> dawn kopecki, great to see you. also, thank you david welch for your reporting. roger altman stays with me. be sure to check out david and "bloombergies in moeli --that are covered markets." your typical bank offering. we will be back. ♪

>> we are back with my guest post, ever court -- evercore's

roger altman. companys taking the private. and wall street ipo is rare, but there is something even more unusual, and eric schatz good -- erik schatzker explains. >> if you look at is what is being proposed, it is quite a bit different than what -- how .oger has structured his firm it is more like google or facebook then it is evercore. there will not be an independent board of directors. says goes,n moelis and that to my knowledge has never been done before. there is no firm on wall street that has a dual class share structure and allows one man to decide everything. is that right, roger?

>> not really. it is widespread among public -- private firms. firm? not on a sell side >> you mean an advisory firm? >> well, i just think that .pproach is not uncommon >> so the trail has been blazed by private equity firms? >> sure. where the founders have the key legal rights, there is nothing terribly new about that. >> you are saying for a public firm. >> it is not like greenhill, lazard, goldman sachs, morgan stanley, and the list goes on. >> that is true, but wall street as a whole, it is not uncommon. >> do you wish in retrospect that had the market allowed it, you would have structured

evercore that way? >> no. not at all. everybody has their own view of what type of culture they want. i have a lot of respect for ken moelis. i hope the ipo is successful and i think it will be. that andoes it say mullahs has decided now is the time to bring his firm public? -- ken moelis has decided now is the time to bring the firm public? >> having to suggest that yousitions will improve, are taking yourself public on the perception of enough doing, and that is the time one wants to do this type of thing. >> the last wave of ipo's was during the last merger boom, .reenhill, evercore >> 2006 for you. take us back to that time period

. why did you decide to make that decision? expand awe wanted to lot faster than we had been, and in the intervening years we have. i think we thought and it has been proved correct, that the availability of a public currency would facilitate recruiting, and indeed it has. if you go to recruit someone quite senior people have large amounts of deferred compensation and equity in particular, and how do you address that? you have to eat come -- have to, in some form or another, replace that. you could use cash, but there are limits on that. number one, to help recruit, number 22 spread the firm -- number two two spread the firm's brand, and that has been our

case, but it is not for everybody. evercore orink that greenhill provides a good model for what moelis and company will be like as a private firm? about the good things filing is ken moelis is only taking the advisory part of that and holding back the management part. public --rcore is a right? >> right. i do not see any reason why this will not be successful, and why the public markets have not been hospitable. >> correct me if i am wrong, but it is about, in terms of the value, the same as publicly traded terms. >> we will find out. if the market is generous, it and company ais

good evaluation. >> i think the timing is good in general. >> erik schatzker, thank you. roger, the time always flies by. roger altman, chairman of evercore. coming up, what can brown do for you? it could go green. we will talk about the upsstment upses making -- is making. and, what a ceo is seen through the eyes of his client -- client warehouses. ♪

>> a lot of -- atlanta coming out of the geneva motor show including apple and harare strengthening their part -- strengthening their partnership. tom gibson has more. >> one makes top-end phones.

the other makes luxury cars. they are two of the world's most sought after brands and now they are working together. carplay is a new lead form and it is available in the new ferrari just launch at the geneva motor show. it is a technological customer satisfaction -- in other words, to give to our clients when they drive the possibility to be connected. >> it could be used to get directions, make calls, listen to music. whether it is controlled by voice or by using the steering wheel, it is up to the dollar -- driver, but how wise of a move ?s partnering with harare the brand -- for ra? it is so exclusive. it is also partnering with mercedes and volvo.

that is before 12 more carmakers join. by getting in with the likes of ferrari, they're sending a message, as they want to maintain their luxury status. >> you never get bored looking at beautiful cars. still to come, they took a lot of flak for big promises they did not deliver this holiday season and now ups is moving forward to make a huge investment in alternative fuels. or to come in a moment. ♪

>> time for this versus that -- a previous post of the nbc's tonight show might have the last laugh. this is jimmy fallon and seth meyers. you could not have avoided them recently. nbc has been promoting the two shows like crazy.

will they be successful? only time and nielsen will tell. that is conan o'brien who had an unsuccessful run on "the tonight show" that ended in 2010, that and hea late night show has an extra gig. he will host the mtv movie awards. mtv brings in a much younger audience than the tonight show, something nbc executives are bound to notice. minutes past the hour. equity futures are flat. payrolls report, 139 thousand jobs created, a little lower than what economists estimated. we are on the markets in 30 minutes. coming up, andreessen horowitz cofounder ben horowitz on the essential of doing the dirty work to build up a successful startup. the deal between dish and disney

that could have the cable guys looking over their shoulders, including netflix. ♪

>> 30 minutes to the opening bell -- this is "in the loop" with betty liu. the countdown begins right now. >> welcome back. you are "in the loop." here is a we are working on. futures indicate stocks are little changed at the open. companies added fewer employees than expected last month. bad weather could be to blame for some of that. billionaire elon musk goes to capitol hill. he will testify before a senate panel on national security space launch program. biggests -- world's

package shipping company is making investment in alternative fuel. carol massar recently went inside ups. i remember that well. you are driving the truck, delivering the packages. those vehicles will run on a variety of fuels. >> they have been for some time. they have electric, hybrid electric, and traditional gasoline and diesel, and they have propane. the news today from ups is about propane specifically. run in georgia last winter and they are announcing they will spend 70 million dollars to buy propane trucks for the united states specifically. they had propane trucks he and canada, but they are creating a propane leak in the u.s. that will replace gasoline, diesel-fueled vehicles largely

found in rural areas. they will also be looking to expand it to other states. also installing an additional 50 fueling stations at various locations. what is interesting is the company says this move will displace about 3.5 million gallons of conventional gasoline and diesel per year, a definite move into propane. carol?now, >> i spent a lot of time with the company at various facilities, and what i find over and over again is this is a company about crunching their data. i was at their big of in inisville, -- hub louisville, and i was reminded that they like to crunch the data on everything they do bad -- do. they are trying to figure out to do with a huge fleet of airplanes. i spent time with the delivery

man here in new york city. they are looking to be efficient. this is a big company. they monitor everything. they standardized even the smallest issues. they used to have their drivers only make right turns. it is only about not waiting at a corner. i have also spent a lot of time on their route guidance system. it is all about saving time and money, reducing fuel burn. that is a big deal. >> i was going to say, how big of a deal is reducing fuel costs? >> it is a huge cost component. fleet, ital delivery is more than 96,000. propane is more readily available, especially on rural routes. they also talked about increased natural gas reduction making it more readily available, and you mentioned fuel costs -- fuel specifically will be cheaper. they say about $1.25 to $1.50 less than gasoline or diesel and

it gets similar mileage. i also want to point out this is a company aware of their carbon footprint. they have to be because of regulations and because they are concerned about it. feels like propane are a clean your burning out -- cleaner burner -- burning alternative. this will give them one of the largest private propane fleets in the u.s.. >> thank you. carol massar, chief national correspondent. let's stay on the topic of shipping. prologis, the developer that built logistic facilities for companies like ups, amazon, walmart -- they are up a strong 13% this year. internet commerce and recovering economies are driving demand and a recent dividend hike and a joint lucrative adventure has drawn attention to the company.

where is the company building for the future and can the trend continue? qana, lebanon, ceo, joins me now. when are you building this areribution center -- where you building these distribution centers? >> we are active in asia, latin america and here in north america, and we are building everywhere. this is not an isolated event. in the world is getting more interconnected. consumption is increasing, and our buildings enable that commerce. >> here in the u.s. are we seeing a uniform recovery or uniform growth? >> we see pretty good growth. it is not exuberant by any stretch of the imagination, but it is pretty solid. if you think about the fact that the nongovernment sector is accounting for all of our growth, that sector is growing

well. it is the other historically that has pulled its weight, the other 25% that is stagnating. the new supply buildings is in check. >> what do you mean? >> before, in recoveries, construction would come back quickly. this time it has not, and that is because ranks have been pretty well. it does not always make sense to build new buildings. until rent is recovering -- >> you are able to hike your rent. >> exactly. we get pricing power and because we have a good balance sheet, and a good relationship with customers, we can be at the leading edge of building new facilities. >> when you are building new skcilities, what do clients a that is different than five years ago? >> they are getting bigger, much bigger. hey big building 10 years ago would be half a million square feet, and now one million

buildings are run-of-the-mill and some are approaching 2 million square feet. >> why is that? combine into fewer facilities, and they are moving from outline locations close to population centers are >> fair getting bigger. >> i would think it would be the opposite -- >> they are getting bigger. i would think it would be the opposite. gethey were moving away to further from higher rent, and now to be closer to customers they are coming in a big city, and it is difficult to do getting a big piece of land in a big city. >> it has to be expensive. is that a situation where only the biggest companies will be able to afford that kind of convenience? itthe bigger companies do themselves, and smaller companies do it through third-party providers. everybody is trying to get

closer to customers. five years ago, they would go to out-of-the-way places to save on taxes, but the tax issue has gone away in e-commerce, and they're coming right in with the population is. >> it is all because of this demand for same day delivery -- >> it is going in that direction . nothing is getting slower. >> we will be back with hamid moghadam, the chairman and ceo of prologis. coming up, dish pulling ahead in the race to deliver television over the internet. can it succeed where others have failed? ♪

>> we are back with prologis chairman and ceo hamid moghadam. we were talking about what is going on in the u.s., but i'm curious about what is going on on overseas because we care about emerging markets not growing like they used to --

because we hear about how emerging markets are not growing like they used to. what are you saying outside of the u.s.? >> emerging markets have slowed down, brazil and mexico have been slow, but our business is gdp.ed to consumption, not consumption is related to the emergence of the middle class, and these companies are going through a phase where they are in the steep part of the emergence of the middle class, and four a while i think our business will continue to do well regardless of topline growth in gdp. in all of these places, we have been doing great. i would tell you that in the last six years it has been spotty different places around the world, but in the last 6-to- 9 months, with a couple of exceptions -- france, hungary, they are slow, but even in europe, the u.k. on fire, northern europe, germany is on

fire -- i would say there is good activity all around. >> is there a different strategy in these countries, japan, or the u.k., for instance? >> in japan we've built more than two story buildings because land is scarce and expensive, so you end up going vertical. in markets like the u.s., land is plentiful, so you build large single-story buildings. there are different types of buildings you build. in certain markets you are not allowed to build really large buildings so you build a series of smaller buildings. there are regulations like that, but basically the big trends are all the same -- everything is getting faster, consumption is going up, and our buildings are the enabler. >> you recently had an injection of $1 billion of cash, is that right, from the norwegians? >> we have been two deals with the norwegians, one in europe

for a joint venture about one year ago, and more recently $1 billion in the u.s.. >> with the sovereign wealth fund, right? >> yes. >> would you do with that cash? how do you deploy that cash? >> they are interested in growing their presence in the logistics sector and we are the largest player globally, so it makes sense to put resource together and build a logistics component to their portfolio. they are interested, like every other investor, to diversify into real estate and logistics is an important component. >> and you are the biggest player. are their markets you are trying to get into this year? >> we packed our markets. we could expand into another market and pick up another point of gdp, but at that point it becomes irrelevant. our opportunities to get deeper in the markets we are in. >> you are find where you are. >> that is right.

soid moghadam, thank you much. coming up, venture capitalist ben horowitz speaking out about his firm's investment in facebook, twitter, and many more. as the billionaire space race takes off, it elon musk -- elon testifies on the hill. we will be watching the testimony closely. stay "in the loop" for details. ♪

>> first. bloomberg.

>> moving and shaking this hour, and dishbob iger offer angree to internet-based competitor to cable tv and netflix. rightsl gives additional to carry disney, espn and abc programming online in a service known as over the top because it runs over an internet connection. them it's ato put technology that allows users to skip commercials. i want to bring in the bloomberg industries director of research, paul sweeney, who follows all of this. this is a big deal, perhaps one of the biggest rivals to netflix, am i wrong? >> no. you are exactly right. this could be a rival to netflix

. we know online video consumption is going up. people are watching more and more content online. look at the growth of youtube, for example. big content players are looking for a way to get content online to consumers in a way that does not threaten the existing ecosystem whereby content providers receive a tremendous amount of fees from cable operators, but they have to figure out how to reach younger consumers that are consuming more content online. >> are you surprised that dish, charlie ergen, would give up big -- or make this concession on the auto hop feature which has been disruptive? >> i think they struck a big deal for shareholders. given the opportunity to partner with a major player like disney to potentially offer an online, over-the-top video product is

competitive. just look at the growth and the success of netflix to see this is a potentially huge business. charlie has good leverage over content providers because of this auto hop feature that is part of the dish satellite service. content providers, broadcast networks, cable networks, they are keen to get this auto hop disabled as it is important to them as they try to sell advertising. >> it has been difficult for the advertisers. paul, could this serve as a template, a model, not only for dish, but for other programmers and the entire cable tv industry question mike directv, even --? cable tv industry, directv, even? >> i think it can.

the cable providers have all talked about the need to reach consumers that might not be subscribing to cable television. how do you do that? over the internet. they have been thinking about ways to provide packages to reach these consumers online, over the internet. this might be the template for the industry to move forward with more deals. >> what could netflix do to combat this? >> netflix, as you know, is the relatesd gorilla as it to online video. they are first to market. mary tremendous brand. originalcreating content. they view themselves as hbo, taking a cue from hbo with high quality, original content driving subscriber growth with "house of cards" for example. >> thank you, paul sweeney,

bloomberg industries. we are a few moments away from the open. we have the top 10 trades you do not want to miss. keep it here on "in the loop." ♪

>> first. bloomberg. >> welcome back. you are "in the loop." it is 26 minutes past the hour and bloomberg television is on the markets. julie hyman has the latest on futures, looking mixed. >> there is very little movement after the adp payrolls report that showed a gain of one hundred 39,000 jobs last month, short of the estimate for 155,000. traders are not really phased. there is one more report coming out in about a half-hour, the ism services report, and their economists are estimating are 53 .5 ing a drop to

february from 64 in the prior month. i will be a key number. >> thank you. we're on the markets again in 30 minutes. let's count down the top 10 but the only traits you need to know about. and xomawith number 10 as they said they would hold studies of a new arthritis drug saying it was not effective enough cap they've been neutral.d from fuelcell is gaining. >> number eight, canadian solar shares on june after the solar equipment maker reported fourth-quarter earnings that missed estimates. they also issued a disappointing revenue forecast for the quarter

due to longer shipping time to japan and the u.s.. >> number seven, barnes & noble 55% in the last month has put it in the most overbought stocks in the russell 2000. last week they posted a $62.3 million third quarter profit and they plan to introduce a new nook tablet. six, engine-maker navi star reports lower sales to the military. five, topping estimates, brown-foreman with sales object daniels -- jack daniels. >> are you a whiskey drinker? >> i am not. >> bob evans farms reported

quarterird -- third earnings that missed and they cut their outlook, and was the latest company to say severe weather impacted sales. honeywell says, they expect earnings to grow at a double-digit pace. they also seek to spend more than $10 billion on strategic acquisitions. >> number two, petsmart reporting earnings that topped estimates, revenue in same-store sales mixed, and they issued a promising forecast for 2015. >> number one, smith & wesson. shares rose after the firearms quarterported third profits above estimates and issued a better-than-expected profit forecast for the current quarter citing increased and that -- handgun sales and profit margins. time for the call on the markets.

i want to bring in steve wood who is calling that markets go up this year by 4%-to- >> our formal call is that high single-digit, for .5% from where we are. -- 4.5% from where we are now. to lesser degree, they are squeezing investors out of safe haven free assets. that is the game. to the extent that they take away the investment option, what investors might have called "yield" in the past, the federal , forcings taking away investors into more risk oriented assets. seeing's why you are stocks continue to rally. driven bull market. the fed is reducing the more secure risk options investors face. that squeeze play will go on for

the foreseeable future. what kind of multi-asset risk portfolio becomes appropriate e? >> one of the things that steve is looking at his sales growth. this has been a theme. investors are looking at earnings that companies are squeezing's is much as they can out of the earnings picture. to analysts, here's the estimate sales growth for industries in the s&p 500. utilities coming in at the top spot. estimated growth of 6.1%. there could be a bit of a risk in terms of stock performance as you will up. tolities tend to be punished some extent. financial, 5.3%. continuing down for some of these companies. health care on this list. up five percent. then consumer discretionary and

tech rounding out in terms of the top sales growth that analysts are looking for this year. >> what does that tell you, steve? >> i agree. utilities having some downside risk in the in ryman. we are in a mature margin cycle. we have been in this for five years now. they say there is no fig leaf on the top line. companies can hide. in a challenging economy that is improving but not briskly, companies that can demonstrate pricing power that can hit those revenue numbers will be more of the darlings of the market. >> they will be where? is one name that we like. energy would be a name in terms of a sector play. this energy independent north america is a very good thing for the next 7-10 years. looking at the net states with our natural gas reserves. be fallout from those will significant. manufacturing is improving. there are ideas where the u.s. is globally competitive but are

internally focused. the u.s. is a big economy but does not trade a lot. not compared to hong kong or south korea or holland. --e inward focus >> more but consuming pattern. you are looking at stock versus high-yield. they highlighted this inverse correlation we have seen in the s&p and high-yield spread. red shows the lower default risk. the economy gets better, more confidence in stocks, less concern over credit quality. we keep getting new ties in the s&p -- new highs in the s&p. how does this change the investment landscape for the rest of the year? >> wire using this? >> is an improving economy. the liquidity is provided. are being muzzled. they're not the same as stock.

almost as volatile, but from different sources. --t is part is the strategy part of the strategy as well. we look at a more return seeking investment strategy, can you get volatility that comes from different sources or non-correlated sources of return? you can use that in a total portfolio to drive that return. benefitingbonds are from an improving economy. ssfault rates being at le perceived risk. they will belly up in the specific issues. avoiding theseu days? what was popular over the last several years -- the safe haven assets echo >> that is somewhat of a strong argument because the interest rates are creeping up. we're looking at a 10 year government bond. that range. there will be a melt up in

rates. as you are looking in the a lotnment, lov of investors have been used to this. we are in the winning ways that play. reading those rates return, you take off inflation and you are zero-ish. the safe heaven assets are something you want to look at. are you overexposed? is that going to a road your year range? >> we've seen a few corrections. echoabout the decline see is that ove? thingse are a couple of that are high probability bets. one is volatility. another one is the federal reserve paper. we will see this melt up in rates. bonds are going to be volatile as well. you get a 10 year government bond that can go up to

2.6-three. one frustrating aspect that there has not been a correction and pushing two years. we have seen some volatility. it the 2000 small-cap space, there is been five percent rates. it has been frustrating that the market has not sold off enough to give us those really attractive valuations. >> ray to see you. thank you so much. raceg up, the millionaire moves to another level to two cu top competitors. startup cashes in. we will hear from him in just a moment. stay in the loop. ♪

>> here's a look at the top tech stories. verizon wireless ranked highest among its peers in four out of

five categories. performancetwork and a six-month review of reliability, speed, call quality and text messaging. scored 89 out of 100 points. at&t came in second with a score of 86. the new iphone six may be unveiled as soon as the third quarter this year. it is likely to have a larger screen according to analysts. apple could benefit from demand for a larger screen. one of the most well-known venture capitalist firms in silicon valley with investments in facebook, foursquare, twitter, pinterest and dozens of other successful companies. they have a strong track record. the cofounder of the firm is now the author of a new book called the hard thing about hard things. west's cory johnson

sat down with horwitz and asked him if his writing was leading to better deals. often feel like they know me before they meet me. that is a big advantage. i'm sure you get that too. if they see you coming express yourself and you say what you think any put yourself out there and then they go, ok, i know this guy and then they say, i've already met you. i've had this experience myself when i meet people like my friend, i was like, hey, i listen to your albums. these kinds of things are helpful in building relationships. >> new have that experience with someone -- >> as opposed to the fake you. the thing that people appreciate is that it is the honest side of it.

i'm not trying to put a spin on it or trying to look good or cover up all the things i did wrong. i'm trying to say, this is what happened. what is different about the last technology era. because getting started is easier, and a lot of ways, they are younger. the strength of being young is you don't have the old paradigm in your head so it's very easy to break it. which is a big deal in technology companies and innovation. the disadvantage is, you are young. there's a lot of stuff that you don't know and is a lot of wisdom that you don't have and that can lead to doing things that have very dangerous long-term consequences. thatshould mention

inomberg lp was an investor horwitz. be sure to catch the full interview and all the latest in tech and media on bloomberg west. in washington, one of the world's most well-known innovators is taking his quest for space exploration to the hill. we're talking elon musk again. the ceo testifying before congress. seated right next to him will be his biggest competitor. we are on capitol hill with the preview of this latest chapter of the space race. we're likely going to be seeing sparks fly, literally, between the two rocket teams. >> that's right. we will have to wait and see. we don't have to wait much longer. ceo elona.m., space x musk will sit next to his testify before the

senate appropriations subcommittee on defense. they're here today to talk about the extendable launch vehicle program known as eelv. the program valued at $70 billion is a federal government answer to reducing the cost of military satellite space launches. xe contractors like space have yet to snag one of these launches because it does not have certification to do so. right now, united launch is the only rocket maker with that approval, which means they have held the monopoly for years. it in december, they were awarded another commitment for 35 more launches over the next five years. the monopoly should be coming to an end. the pentagon is putting up 14 more missions for grabs for new

to enterlike space x that market. elon musk is going to make the case that space x is up to the job. >> it seems like elon musk as the underdog here. >> he definitely is. he will make the point that the federald save government $1 billion a year if it were to go with space x and he has had a couple of good weeks. first, the air force announced last week that its falcon nine launch back in september would count as one of the three necessary certifications and needs. tesla last week successfully raise $2 billion in convertible .onds for new battery plants he is hoping that positive momentum will carry him through today's hearing as well. >> you think we will see the two ceos criticizing each other? >> there will definitely be some of that below the surface.

both have plenty to say about the other. is facingnch alliance some pressure from the pentagon right now to fix some quality control procedures. space x could come under attack for the fact that they don't have a proven track record right now. this is really about the viability of commercial space launch programs. both ceos are therefore a similar purpose. they should still stand united. united launch alliance people tell me that they don't see today's hearing about being just one company. >> thank you so much. on the hill ahead of the elon musk testimony. we will be be back in a few minutes on in the loop. ♪

global now for the outlook. western nations are talking

sanctions on russia. russia talking sanctions. companies that do business in ukraine and russia -- mike mckee will see the impact >> on those companies. >>there are hundreds of u.s. companies involved. not just pepsi and coke and mcdonald's. companiesst of the tell us that their operations are unaffected, even companies like adm and bungee with terminals near the ukraine in the black sea. their stock prices are handing -- hanging in there. take p&g. they have been in ukraine since 1990 and russia since 1991. three weeks ago, they lowered their earnings forecast gyratingf wildly currencies. emerging markets like russia and ukraine will reduce earnings per share growth by about 1%. the ruble since then has made matters worse. $1 billion int

russia over the last decade. it was the first foreign blue-chip company to sell ruble denominated bonds here to look at what is happened to the yield on the spots. -- on those bonds. they will be paying for that as well. >> one of the companies that has to be concerned as boeing. >> boeing has a big concern because they have a lot of facilities in the ukraine and in moscow. of investmentsh there. major manufacturing -- they have a design plan as well in moscow. they forecast that russia and overne will by 1200 planes the next 20 years. sanctions could really hurt them. they are a big buyer of titanium. about one third of the titanium that goes into all their jets comes from russia. they do have long-term contracts that affect price. the spot price has been going up quite a bit in recent days. that could cause problems for

them and for others down the road. >> and auto companies? >> you have four, chrysler and general motors. russia has been a big growth market for them. it is flowing now and this just adds to the problem. >> how much of a long shadow is this going on in the ukraine? deteriorates, it will have ramifications in terms of economic activity. i sincerely hope it gets resolved quickly. >> even if the stock prices for these companies are hanging in there, they all have the same sentiment. let's get this over peacefully and quickly. >> make you so much. mike mckee. that does it for today on in the loop. kroger's cfo will join us tomorrow for exclusive interview. we'll find out about the health of the u.s. largest growth rate chain -- grocery chain. that is tomorrow starting at

8:00 a.m. eastern time. be sure to turn in -- tune in. on the markets is next. ♪

>> is approaching 56 past the hour. that means bloomberg television is on the markets. i'm julie eyman. let's take a look at where stocks are 30 minutes into the trading session. not really changed a. the adp unemployment report coming in a little worse than

estimated. not enough to really persuade stocks in either direction. if you look at what is going on in the emerging markets come away been watching them closely. we are seeing a rebound there on some relief that tensions and ukraine don't seem to be escalating. we are taking a look at pharmaceuticals. the world's largest drugmaker's shares are up 20%. they recently dealt with a management shakeup and nursing a larger hurdle later this year. let's start with that game that we have seen this year. up 23%. this is a company that is based in israel. very important in israel. trades here in the u.s.. outpaces this year far what we have seen for u.s. stocks for sure. >> true. over the last three years, is still relatively flat. >> why have we seen that big rebound this year? >> a lot has had nothing to do

with the company itself. it has more to do with the activity in the sector. iant buyingn valley companies. people are hoping that they will be involved in a major deal this year. >> facing a big challenge because, like the many drugmakers, it also has a blockbuster namebrand drug. it is losing patent protection. how will it cope with that? >> it's ironic. it's the world's largest generic drug maker but it makes most of its money off a proprietary drug . it makes more than half of its profits from the single drug, which is about to lose protection this year. >> treating multiple sclerosis. >> is a really significant revenue driver. they have been preparing for this cliff where wild. they haven't really found a substitute for profits. >> >> at the same time, it has

had this whole management had had its first foreign-born ceo. he then appointed a number of other executives were non-israeli. what's happening on that in terms of a new ceo and management changes? >> the previous ceo was fired last fall. the company was left without a leader. a month ago, they installed a new ceo. the market reacted quite favorably to this, less because of the ceo himself but because it was stable. really, it is wait and see. nobody really knows if he will bring a new strategy. meanwhile, the board is also going through a shakeup. >> there is also pressure on the doing someterms of cost cutting. there's pushback from israelis because it is so important as an

employer. >> the company is in the middle of a $2 billion cost cutting plan. they lag behind some of its competitors in making these cuts. there is extraordinary political pressure at home. >> really fascinating read that your article on the company and on its cultural importance. talking about -- we will be on the markets again in 30 minutes. market makers is next. ♪

>> live from bloomberg headquarters in new york, this is market makers with eric chester and stephanie rule. class action on the ropes. the supreme court picks up the most important business case of the season. the justices could neuter or kill the shareholder class action lawsuit. future please in powered by something other than gasoline. how much the alternative fuel will save this global shipping giant. >> worried about getting a big meal after the end of the world echo the noah's ark for food in the arctic that aims to save mankind. everybody.g,